Free WiFi: Should Retailers Offer It to Customers (CH 4)

http://www.cio.com/article/442666/Free_Wi_Fi_Should_Retailers_Offer_It_to_Customers_

Since I spend a fair amount of time traveling to meet with clients I often find myself looking for somewhere that I can grab a quick bite to eat and check my email so this article was of particular interest to me. Recently I stopped at a Chick-Fil-A for no other reason than I was craving some CFA and was pleasantly surprised that they too have joined the growing masses of retailers offering free WiFi. Interestingly enough, there are several theories discussed in the article about how, and why various retailers including McDonald's, Starbuck's, Borders, and Panera Bread offer this service.

It's widely accepted that WiFi has become standard in today's fast food restaurants, coffee shops, book stores, and just about anywhere that offers a place to sit down. The only question is should this service be provided as an amenity or should there be a charge. Retailers agree that WiFi promotes customer loyalty, increases average ticket prices, and promotes band loyalty. Panera Bread has one of the largest free WiFi networks in the US and was one of the first concepts to offer it for free. Other retailers such as Starbucks and McDonalds have partnered with providers that handle the IT setup and network management and charge a usage based fee. There are often discounts tied to brand loyalty either to the retailer, the provider, or both but studies show "resistant to paying for access remains high."

Retailers that charge for the service suggest that in doing do they are able to regulate usage and avoid a shortage of available seating. Simply put by charging retailers hope to avoid customers camping out at a booth all day and taking up table space. Ultimately WiFi will become another cost of doing business for most restaurants just like salt and pepper. The trend has become a trade of sorts where the retailer is able to collect data from their customer in exchange for free WiFi. Prior to connecting to the network, the customer is asked questions that could provide the retailer with invaluable consumer information specific to their business. It's basically a trade off between retailer and consumer which I'm perfectly fine with - I just know that I'm not paying for WiFi, even if it's only $2 an hour....